Germany’s turn to electric cars stopped being theoretical last month. Battery-electric models outsold every other powertrain in June, taking 28.4 percent of the country’s market and finishing ahead of hybrids for the first time. That figure would have looked absurd two years ago in a country whose industrial identity is welded to the internal combustion engine.

Read: Tesla’s Model Y Went From 42nd In January To Europe’s Best-Seller In March

Figures from the Federal Motor Transport Authority (KBA) reveal that 84,057 new EVs were sold last month, a 78.2 percent rise from June last year. This allowed EVs to narrowly edge out hybrids, which had been the most popular powertrain option the month prior. Hybrid registrations came to 83,315, a hair behind the EV total but still good for a 28.1 percent share.

Germany Car Registrations By Powertrain Type

Crucially, both EVs and hybrids are now comfortably outselling traditional petrol-powered vehicles, which held a 20.5 percent share of the market with 60,796 registrations in June. Trailing petrol-powered cars were diesels with 33,862 sales, or an 11.4 percent market share, slightly ahead of plug-in hybrids with 32,212 sold, enough for a 10.9 percent share.

Which EVs Are Most Popular?

The most popular EV in Germany last month was the Tesla Model Y with an impressive 6,023 sales recorded. This placed it well ahead of the VW ID.3 in second with 3,514 registrations, followed by the Skoda Enyaq with 3,383, and the Skoda Elroq with 3,315. Other cars among the top 10 best-selling EVs included the BMW X1, Mini (it’s unclear which specific model), Audi A6 e-tron, VW ID.7, Cupra Tavascan, and Mercedes-Benz CLA Electric.

The Model Y proved to be so popular that it was actually the third best-selling new car overall in June. It only trailed the VW Golf, which recorded 8,117 sales, and the VW T-Roc, with 6,808 units sold.

Although EV and hybrid sales are surging in Germany, the vast majority of the nation’s total vehicle fleet still relies solely on fossil fuels. In fact, there are currently 61.3 million registered vehicles on German roads, of which 59.3 percent are powered by petrol and 27 percent by diesel engines. Hybrids account for 6.5 percent while BEVs have a 4.1 percent share.

Germany Best-Selling EVs June 2026

KBA

Volkswagen Group Retail Deutschland (VGRD) has rolled out an “innovative salary conversion” program that enables shoppers to get discounts on electric vehicles. This isn’t pocket change as the company noted customers can save up to 50% compared to private leasing without a down payment.

The program is known as e.loop and it effectively sees employers lease a new EV for their employees with money taken out of their salary. That sounds a little convoluted, but the automaker said the employer signs an agreement with VGRD and then employees can select their desired vehicle online. “The monthly payment is deducted directly from gross income as part of a salary sacrifice arrangement, automatically resulting in a benefit in payroll taxes.”

More: VW’s New ID. Polo Starts Under $30K And Brings EVs To The Masses

Volkswagen suggests this is as simple as a four or five step process, and much of it can be done online. They went on to note the program should be attractive to employers as it enables them to take advantage of tax benefits for electric vehicles, helps retain and attract workers, and improves their Environmental, Social, and Governance (ESG) profile. They added it requires minimal administrative effort and provides access to everything from the Volkswagen ID.3 to the Porsche Cayenne Electric.

Employees get significant savings and all-inclusive ownership. This includes the vehicle, insurance, and maintenance. Volkswagen suggests the process is relatively straight forward and the hardest choice is selecting what EV you want.

Automobilwoche says the program is similar to company bike initiatives and customers can choose between 24 or 36 month terms. The program already appears to be a hit as VGRD said interest is “very high” and officials believe the e.loop program could account for 5-10% of new cars sales in Germany by 2030.

While the program sounds like a win-win for employers and employees, there appears to be some possible downsides. The biggest is that companies could get stuck with a car after an employee leaves the organization.

Chinese EV startup Leapmotor, which has expanded into global markets, including Europe, on the back of its partnership with Stellantis and its sales network, just posted record numbers for the first half of 2026. Once you see how cheap some of the company’s newest models are, the surge makes sense. In Germany, one of Leapmotor’s entry-level EVs can be had for just €48.90 ($56) a month, and no, that number isn’t missing a zero. That works out to less than most people spend on a monthly phone plan for an actual car with a warranty.

A couple of years back, the German government pulled its EV subsidies, and sales cratered almost overnight. The incentives returned this January, knocking up to €6,000 ($6,800) off the price of a new EV for a family with at least two children and a combined income under €45,000 ($51,500).

Read: Stellantis Turns A Tiny Chinese Hatch Into A Delivery Van That’s Light On The Van Part

With that subsidy in play, plenty of shoppers can skip the down payment and delivery fees entirely and worry only about the monthly bill. The Leapmotor T03, which retails for €18,900 ($21,600), currently runs just €48.90 ($56) a month across a 36-month term, with mileage capped at 10,000 km (6,213 miles) per year. When the lease ends, buyers can purchase the T03 outright for €11,139 ($12,700) or hand back the keys and shop around for something else.

Why Is It So Cheap?

While one could argue that a family earning less than €45,000 ($51,500) shouldn’t be looking at a new car but rather a used one, being able to lease and drive one for just €1,760 ($2,010) over three years is one heck of a deal.

“The vehicle’s extremely competitive pricing is made possible by Leapmotor’s high level of cost efficiency,” Leapmotor told Nikkei Asia in an interview. “One key factor behind this is the company’s extensive vertical integration. Additionally, the leasing rate, which starts at just 49 euros, is made possible by German government incentives.”

Leapmotor Sales Surge

Some observers figured Leapmotor was pricing the T03 this low to clear inventory, worried the compact EV would fall foul of new EU rules that require camera-based driver assistance systems, upgraded autonomous emergency braking, and enlarged head impact protection zones for pedestrians and cyclists. However, a Leapmotor spokesman has rejected this, stating the T03 complies with these new rules.

Through the first half of 2026, Leapmotor has sold 356,487 vehicles globally, a 95 percent increase over the same period last year. It enjoyed a particularly strong June, selling a total of 93,376 models, also a 95 percent year-on-year increase. Since its formation, the company has sold more than 1.55 million cars.

Zeekr, the upmarket arm of the Geely Group, genuinely believes its cars stand shoulder to shoulder with the best from Germany’s premium brands. The man running Zeekr in Europe staked that claim in a recent interview, even though the company’s European operations have been up and running for barely six month,

That executive is Lothar Schupet, who logged 23 years at BMW before crossing over. Under him, Zeekr has rolled out a handful of models on European roads: the entry-level Zeekr X, the larger 7X SUV, the 001 estate, and the new 7GT. The brand is courting fleet buyers ahead of private ones for the moment, mostly because it currently has no dealership network anywhere in the region yet.

“I am firmly convinced that our products impress with quality and performance,” Schupet told Car-Editors. “In my opinion, we are on par with all premium manufacturers. That’s the basic premise.”

Read: Zeekr’s New SUV Looks Like A Rolls, Hits Like A Hypercar, And Still Burns Gas

Based on our experience with the Zeekr 7X earlier this year, we can understand Schupet’s confidence. Jacked-packed with technology, the 7X feels every bit as premium as something from BMW or Audi, and yet costs significantly less.

Dealerships Are Coming

During the same interview, Schupet added that Zeekr’s initial goal in Europe was to reach as many business customers as possible, particularly those who had used vehicles from other premium brands in their fleets. As this has happened, interest from private customers has steadily grown. Although Zeekr doesn’t have a dealership network, it has established several test-drive centers and has begun accepting “a few hundred” orders from private buyers.

Zeekr hopes to have sales locations across five metropolitan areas in Germany by the end of this year, including Hamburg, Düsseldorf/Cologne, Frankfurt, Stuttgart, Munich, and perhaps also Berlin. These will join the 10 existing test-drive centers across the country.

Asked which existing dealers Zeekr hopes to bring into its network, Schupet said they’re aiming directly at the premium segment.

“Of course, we are specifically targeting dealers in the premium segment. These include the traditional German brands BMW, Audi, and Mercedes. But also Jaguar and Maserati dealerships that may currently have spare capacity and are open to something new. As a Geely Group brand, we are naturally also looking at Volvo and Polestar dealerships too,” he said.

No European Production, For Now

Asked if Zeekr is interested in building its electric cars in Europe, Schupet acknowledged it’s an option, but said there’s no need to do so at this stage.

“Strategically, there is the option of producing locally,” he said. “This has certain advantages, but also carries risks. The speed, flexibility, and agility with which things are done in China are not easy to implement in Europe. Bureaucracy also hinders many decision-making processes. While the punitive tariffs make it challenging to implement a sustainable business model with manufacturing in China… we have now found a business case that works.”

The second-generation BMW iX3 has been well received by most, marking a serious step up from its predecessor and delivering the kind of driving range usually reserved for Chinese EVs. But the launch hasn’t gone off without a hitch. Two recalls have already been issued for the electric SUV in Germany, and one of them sounds genuinely unpleasant.

The first recall landed at the end of May and covers 145 vehicles built between November 25, 2025, and February 20, 2026. According to BMW, these iX3 models carry an onboard charger, the component that converts AC power to DC, that may be faulty. The defect could leave the SUV’s body panels buzzing with electricity while the car is plugged in.

Read: BMW Adds A 395-Mile Base iX3 And A Black Package For Summer

BMW says it isn’t aware of any injuries so far, but it admits owners could get a nasty shock if they touch the car at the wrong moment. The fix is straightforward enough, as the onboard chargers on affected models will be swapped out, whether or not they actually turn out to be defective. With high-voltage EVs, better safe than sorry. All told, the recall covers 145 cars worldwide, 28 of which are in Germany.

Dangerous Airbags

Then a few days later, on June 1, a second recall followed. This time, BMW says the side airbags may not have been bolted in to spec. The concern is twofold: the airbag might not deploy properly in a crash, and the gas generator could shift out of position and strike occupants.

The affected iX3s were built between December 18, 2025, and May 8, 2026. It’s the bigger of the two campaigns, covering 4,843 vehicles worldwide, including 1,071 in Germany. As with the charger issue, there are no known accidents or injuries tied to the airbag fault.

In this case, BMW says it will inspect the screws that hold the side airbags in place and, if necessary, resolve any issues.

For more than two decades, a German badge in China was shorthand for arrival. That equation no longer holds. China remains one of the most important markets for German automakers. The trouble is they are now struggling to compete with local rivals who have captured the hearts and minds of young buyers.

The boss of VW in China, Robert Cisek, admitted that the rapid change in China’s car market has been “beyond imagination,” and means that now, “some younger customers perceive us as the brand for the parents.” For more than 25 years, VW was the best-selling carmaker in China, but was overtaken by BYD in 2024, and dropped to third in 2025 behind Geely.

Read: China Is Getting A Jetta SUV For Less Than A Used Corolla Costs In America

Automotive consultant Felipe Munoz says German brands “didn’t see this big change coming, and they didn’t see the speed at which it came.” While overall new car sales in China continue to climb, the market share of German brands slipped from 26 percent in 2019 to 16 percent in 2025, when they sold 3.9 million vehicles.

Germans Race To Compete

In times gone by, companies like VW could sell their vehicles in China thanks to their build quality, high-end materials, and strong reputations. However, this is no longer enough, Reuters reports.

To try and claw back some ground, the Volkswagen Group will launch 20 new-energy vehicles in China this year, including several battery-electric models, plug-in hybrids, and EVs. Many of these new models were recently unveiled at the Beijing Auto Show, including the ID. Aura T6, which was built in partnership with FAW, the ID. Unyx 09, created alongside Xpeng, and the all-electric AUDI E7X from the firm’s SAIC joint venture.

It remains to be seen if vehicles like these will be enough. According to a recent survey from AlixPartners, young buyers in China are more likely to avoid German cars, despite the ‘Made in Germany’ tagline holding strong appeal in many other countries.

Honda is preparing to pull the plug on its only fully electric model currently sold in Europe. As part of a rethink of its EV strategy, the automaker will take the e:Ny1 off sale just three years after it arrived. That sounds abrupt, and it is. This is not a full EV retreat, though. The new Super-N hatchback is waiting in the wings, set to step in where the e:Ny1 leaves off, even if it targets a very different slice of the market.

A product of Honda’s joint venture with Dongfeng, the e:Ny1 arrived in Europe in mid-2023 as the electric counterpart to the local-spec HR-V. It looks closely related to the hybrid crossover, but its roots trace back to China, where it has been sold as the e:NS1 and e:NP1 since 2022.

More: Honda’s 1.2 Million-Car China Peak Is Now A 720,000-Car Retreat

As reported by German newspaper Handelsblatt, the e:Ny1 has already disappeared from configurators in several major markets, including Germany, Italy, and Spain. The SUV remains available to order in France and Austria, but Honda is reportedly directing remaining stock toward the UK and Nordic regions, where demand has been stronger.

The model struggled to gain ground against newer, more affordable rivals from both European and Chinese brands. Even after a price cut in Germany from €47,590 ($56,100) to €38,990 ($46,000), Honda managed to sell just 105 units of the e:Ny1 last year.

The e:Ny1 rides on the “e:N Architecture F” platform and uses a single electric motor producing 201 hp (150 kW / 204 PS). A 68.8 kWh battery delivers a WLTP range of 412 km (256 miles). Compared with the EU-spec HR-V, it features a redesigned front end with a charging port integrated into the grille, clear taillights, and a 15.1-inch portrait touchscreen inside.

Honda Takes A Step Back

This European scale-back mirrors a wider global pivot. Honda recently confirmed it has canceled several planned EVs intended for North America, including the Acura RSX, the 0 Series Saloon and SUV, and the Afeela sedan and SUV from the Sony Honda Mobility joint venture.

More: Honda Plans To Sell 3,000 Rebadged Chinese EVs As The New Insight In Japan

Despite the gloomy outlook for its larger EVs, Honda isn’t pulling the plug entirely. The Super-N will reach UK and Europe shortly after its initial roll-out in Japan. The pint-sized electric hatchback draws inspiration from the Honda City Turbo II, pairing a sporty body kit with a 94 hp motor. Pricing is expected to start below £20,000 (€23,000 / $27,100), aiming to attract buyers with a more accessible entry point and a distinct character.

The rest of Honda’s European lineup is exclusively available with self-charging hybrid and plug-in hybrid powertrains, as all ICE-only offerings were phased out in late 2022.